Economy
Number of Nigerians Paying Tax Too Low—RMAFC Chairman
By Adedapo Adesanya
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Muhammad Shehu, has lamented over the number of Nigerians in the tax bracket, saying it is too small compared with the population of the country.
In an interview with the News Agency of Nigeria (NAN), he said that less than 40 million Nigerians of the 200 million people (about 20 per cent) are currently included in the tax system and are paying taxes.
According to him, Nigerians need to start contributing their taxes to boost government revenue and improve public service delivery.
In his words, “That is too low for a country that has more than 200 million population. There is all this debate about the informal economy. What this tax reform committee will do is bring a lot of agencies together, including RMAFC. We are members of that committee. We have articulated our position, and we will communicate what we believe can add value to the discussion.
“At the end of it all, we will have a better society where more people are paying taxes, and the money will be utilized for better services and infrastructure so that every Nigerian can benefit”.
He noted that the FG, through its tax collection agency, the Federal Inland Revenue Service (FIRS), is overlooking some core tax, adding that with effective collaboration, this will be achieved.
“There are some taxes that the government is not getting from Nigerians. I believe the FIRS will look at all those things and then collaborate with the NCS for better efficiency.
“I think it is very important for every Nigerian to try and pay their taxes because it is from those monies that you get services.
“All the things that people like to tell you about clean environments, good roads, and functional infrastructure in other countries—it is the taxes that citizens pay that are utilized for those services. People should learn to pay their electricity bills; they should pay their water bills; they should pay just like you pay for telephone recharge cards.”
He called on Nigerians to pay their taxes so the government could provide the necessary infrastructure and ease up on borrowing.
“The more you pay your taxes, the more money the government has to put into road and rail construction, better hospitals, pensions, social security, and a better plan to help the needy,” he said.
The President Bola Tinubu-led administration has set its sights on boosting tax revenues. According to Mr Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal and Tax Reforms, there is no plan to increase taxes but rather a need to harmonise revenue collection to reduce the tax burden.
“We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on the people and businesses.”
Nigeria has a tax-to-gross domestic product (GDP) ratio of 10.8 per cent; comparatively, the average tax-to-GDP ratio for Africa is about 18 per cent.
By Adedapo Adesanya
The woes of the Nigerian Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) further continued on Tuesday, February 24.
During the session, the domestic currency weakened against the United States Dollar by N6.13 or 0.45 per cent to N1,355.37/$1 from the N1,349.24/$1 it was traded in the previous trading day.
The local currency also moved southwards on Tuesday in the same market window against the Pound Sterling after it lost N6.39 to trade at N1,828.26/£1 versus Monday’s closing price of N1,821.87/£1, and against the Euro, it depreciated by N4.94 to close at N1,596.36/€1, in contrast to the preceding session’s N1,591.42/€1.
Similarly, the Naira crashed against the US Dollar at the GTBank FX counter yesterday by N4 to settle at N1,361/$1 versus the N1,357/$1 it was exchanged a day earlier, and at the parallel market, it remained unchanged at N1,365/$1.
The fall of the Naira coincided with the Central Bank of Nigeria (CBN) buying US Dollars from the market to slow down the rapid rise of the nation’s legal tender. Latest information showed that last week, the apex bank bought about $189.80 million to reduce excess Dollar supply and control how fast the Naira was gaining value.
The rationale was to keep foreign investors from pulling their money out of Nigeria’s fixed-income market. If they sell their investments, it could increase demand for US Dollars and lead to more Dollar outflow from the economy.
Meanwhile, Mr Yemi Cardoso, the Governor of the CBN, said Nigeria’s gross external reserves have risen to $50.45 billion – the highest level in 13 years, while speaking after the 304th meeting of the monetary policy committee (MPC) of the CBN held on February 23 and 24.
The committee also reduced interest rates by 50 basis points to 26.50 per cent from 27 per cent after inflation eased in January 2026.
As for the cryptocurrency market, losses on concerns by embattled software businesses that artificial intelligence (AI) tools will destroy their business models continued and overturned some rallies on Tuesday.
Binance Coin (BNB) lost 2.1 per cent to sell for $585.41, Cardano (ADA) dropped 1.8 per cent to trade at $0.2595, Dogecoin (DOGE) went down by 1.5 per cent to $0.0920, Bitcoin (BTC) shrank by 1.2 per cent to $64,098.80, Litecoin (LTC) slipped 1.1 per cent to $51.31, Ripple (XRP) slumped 0.6 per cent to $1.35, and Ethereum (ETH) declined by 0.4 per cent to $1,857.75.
However, Solana (SOL) appreciated by 0.2 per cent to sell at $78.95. while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Adedapo Adesanya
Oil depreciated on Tuesday after Iran said it was prepared to take any necessary steps to clinch a deal with the United States ahead of nuclear talks later this week, with Brent futures shedding 72 cents or 1.0 per cent to trade at $70.77 per barrel, and the US West Texas Intermediate (WTI) futures declining by 68 cents or 1.0 per cent to $65.63 a barrel.
Iran, the third-biggest crude producer in the Organisation of the Petroleum Exporting Countries (OPEC), and the US will hold a third round of nuclear talks on Thursday in Geneva, Switzerland.
America wants Iran to give up its nuclear programme, which the country has denied trying to develop an atomic weapon.
Meanwhile, Iran’s deputy foreign minister said on Tuesday that it was ready to take any necessary steps to reach a deal with the US.
However, the US State Department is pulling out non-essential government personnel and their families from its embassy in Beirut, Lebanon, as concerns mount about the risk of a military conflict with Iran.
The US has deployed a vast naval force near the Iranian coast ahead of possible strikes on the Islamic Republic. The American president, on February 19, said he was giving Iran about 10 to 15 days to make a deal.
Also, the US began collecting a temporary new 10 per cent global import tariff on Tuesday, but President Trump’s administration was working to increase it to 15 per cent, a development that has led to confusion after the country’s Supreme Court ruling.
On the supply front, trading houses and buyers of Venezuelan oil have chartered the first very large crude carriers to export from the South American country since a supply deal began between the US and Venezuela. This is set to speed up shipments from March while boosting deliveries to India.
The European Commission will submit a legal proposal to permanently ban Russian oil imports on April 15.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose by 11.4 million barrels in the week ending February 20, after falling by 609,000 barrels in the week prior. Official data from the US Energy Information Agency (EIA) will be released later on Wednesday.
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited is set to commence export of a new light, sweet crude grade known as Cawthorne from March 2026.
According to a report by Reuters, an NNPC spokesperson confirmed the development, describing it as part of efforts to increase output and consolidate Nigeria’s recent recovery in crude oil production.
The move aligns with Nigeria’s broader strategy to boost production after years of constraints caused by pipeline vandalism, crude theft, and unrest in oil-producing regions.
This follows the launch of two other new grades, Obodo in 2025 and Utapate in 2024, Nigeria, whic,h as Africa’s top oil exporter, seeks to strengthen its standing within the Organisation of the Petroleum Exporting Countries and its allies (OPEC+)
Cawthorne crude is scheduled for export in the third week of March and has an API gravity of 36.4, making it similar in quality to Nigeria’s Bonny Light, which is prized for high petrol and diesel yields.
According to Reuters, citing a trading source, the state oil national company issued a tender last week for cargo loading between March 24 and 25.
Analysts at Kpler noted that the new grade is expected to be exported via the Floating Storage and Offloading (FSO) vessel Cawthorne, which has a storage capacity of about 2.2 million barrels. The vessel is designed to enhance transportation and production from Oil Mining Lease (OML) 18 and nearby assets in the Eastern Niger Delta.
Kpler estimates that, based on storage capacity, Cawthorne could increase Nigeria’s crude and condensate output from roughly 1.65 million barrels per day to around 1.7 million barrels per day for the remainder of the year.
Nigeria’s crude oil production recently dropped from the OPEC+ quota of 1.5 million barrels per day, with output at 1.48 million barrels per day recorded in January, according to OPEC data.
Beyond increasing Nigeria’s crude offerings to the international market, the introduction of Cawthorne could also attract buyers seeking specific light, sweet crude qualities, buoy foreign exchange earnings, which would help strengthen government revenue and ease borrowing needs.
New crude grades are typically differentiated by sulfur content, API gravity, and production source, enabling producers to target specific refinery configurations and market segments.
In November 2024, NNPC officially launched the Utapate crude oil blend in the international market, describing it as a milestone for Nigeria’s export profile.
Earlier in July 2024, NNPC and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO), lifted the first 950,000-barrel cargo of Utapate crude, which was shipped to Spain.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn